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Improving Transitions from School to University to Workplace Improving Transitions From School to University to Workplace The increasing number of higher education institutions (HEIs) in developing Asia can lead to improved prospects for development. However, the rapid expansion can undermine external efficiency—the alignment of higher education with the external environment. This publication focuses on tackling three key challenges in strengthening external efficiency: (i) improving students’ readiness for higher learning; (ii) fostering in graduates knowledge and skills that Improving Transitions meet the needs of labor markets; and (iii) pursuing fresh strategies for productive partnerships not only for top-tier HEIs but also for 2nd and 3rd tier HIEs, to bring the necessary diversity in the higher education scene and benefit local communities. From School to University to Workplace About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ISBN 978-92-9092-824-9 Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org Printed on recycled paper. Printed in the Philippines HIGHER EDUCATION IN DYNAMIC ASIA IMPROVING TRANSITIONS From School to University to Workplace June 2012 HIGHER EDUCATION IN DYNAMIC ASIA © 2012 Asian Development Bank All rights reserved. Published in 2012. Printed in the Philippines ISBN 978-92-9092-824-9 (Print), 978-92-9092-825-6 (PDF) Publication Stock No. RPS124932 Cataloging-In-Publication Data Asian Development Bank. Improving Transitions from school to university to workplace. Mandaluyong City, Philippines: Asian Development Bank, 2012. 1. Higher Education. 2. Labor market. 3. Asia. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Note: In this report, “$” refers to US dollars. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact: Department of External Relations Fax +63 2 636 2648 [email protected] Printed on recycled paper Contents Abbreviations v Foreword vii Preface viii Making Globalization Work for Higher Education Efficiency 1 Gaining Comparative Advantage with Increased Enrollment Rates 1 Strategic Alignments of Economies and Higher Education Systems 2 Diversity Amid Levels of Economic Development 3 Increasing Efficiency while Widening Access: Aligning Schools with Universities 5 Degrees of Expansion 5 Transition Developing Economies: Cambodia , Lao PDR, Mongolia, and Viet Nam 7 Asia’s Giants: People’s Republic of China and India 9 Adjoining Emerging Economies: Malaysia and Thailand 11 Emerging Island Economies: Indonesia, Philippines, and Sri Lanka 13 Small Globally Integrated Urban Economies: Hong Kong, China and Singapore 14 Developed Economies with Universal Higher Education: Japan and Republic of Korea 15 Variations and Commonality in Admission Procedures 16 Differentiating Institutions in Higher Education Systems 18 Alignment of Higher Education and the Workplace 20 Higher Education Graduates to Drive Diverse Economies Forward 20 Occupation Premiums for Graduates from Universities and Higher TVET Institutions 20 The Changing Workplace 22 The Need for Public–Private Partnerships 23 Regional Cooperation Matters 24 Responding to Stakeholders 25 iii iv CONTENTS Proposals for External Efficiency Accountability 25 Unrealistic Expectations 25 The Community College and Higher TVET Sector 26 The Crux of Employability 27 An Efficient Role for Research in Asian Colleges and Universities 29 Measures of Research Output 29 Public–Private Partnerships for Research 30 Strategies to Promote R&D 31 Cross-Border Partnerships for Research Efficiency 33 Recommendations 38 Recommendation 1: Improve the readiness of secondary school graduates for higher learning 38 Recommendation 2: Better align university curricula and instruction with labor market needs 39 Recommendation 3: Improve public–private and cross-border research partnerships 39 References 41 Higher Education in Dynamic Asia: Study Reports 46 Abbreviations ADB Asian Development Bank A-NET Advanced National Education Test, Thailand ASEAN Association of Southeast Asian Nations CSAT College Scholastic Ability Test, Republic of Korea DMC developing member country GCE General Certificate of Education GDP gross domestic product GER gross enrollment ratio GPA grade point average HEI higher education institution ICT information and communications technology IT information technology Lao PDR Lao People’s Democratic Republic MOET Ministry of Education and Training, Viet Nam NCTUA National Center Test for University Admissions, Japan NCUEE National College and University Entrance Examination, PRC NSAT National Secondary Achievement Test, Philippines OECD Organisation for Economic Co-operation and Development O-NET Ordinary National Education Test, Thailand PRC People’s Republic of China QA quality assurance R&D research and development SEAMEO Southeast Asian Ministers of Education Organization v vi ABBREVIATIONS SPM Sijil Pelajaran Malaysia (Malaysian Secondary School Certificate = O-level certification) STI science and technology innovation STPM Sijil Tinggi Pelajaran Malaysia (Malaysian Higher School Certificate = A-level certification) TVET technical and vocational education and training UK United Kingdom UPCAT University of the Philippines College Admission Test US United States Foreword Quality education is essential for creating a sustainable human resource base upon which to build a country’s development. Asia is experiencing a growing need for skilled managers and professionals in a variety of fields. Investing in higher education will help developing Asian countries build high-income economies, with the innovation, knowledge, and technology needed to thrive in an interconnected, competitive world. ADB has accumulated significant experience in providing support for improving education systems in its developing member countries. In response to the growing needs of these countries, ADB is boosting its support for higher education. The changing landscape of higher education requires new thinking and updated practices. Questions central to the issue include: What are the strategic and operational priorities for higher education in the region? How should support be targeted to achieve a high, sustainable impact? How can ADB best assist its developing member countries to substantially raise the quality of and expand access to higher education within a reasonable, yet ambitious, time frame? To provide insights into the kinds of changes demanded in higher education, ADB financed a major regional study drawing on the views of subject experts, higher education leaders, regional stakeholders, and participants of an international conference on higher education in Asia. Higher Education in Dynamic Asia is the result of this study. I am confident that it will provide valuable input into the process of higher education reform across Asia. It will also provide critical input into ADB‘s work in assisting the region to develop the full potential of its people. Bindu N. Lohani Vice-President (Knowledge Management and Sustainable Development) Asian Development Bank vii Preface The number of colleges and universities in developing countries in Asia is increasing, which has the potential to improve the prospects for economic development and better quality of life. If Asia is to achieve the vision of becoming the world’s economic driver, it will need to provide high-quality higher education for a sufficient number of secondary school graduates, especially in the fields of science and technology. More importantly, its universities at all levels will need to graduate creative thinkers who can respond to changes in global circumstances. When colleges and universities expand rapidly, external efficiency—the alignment of higher education with the external environment—can weaken. This happens when (a) too many secondary school students are unable to pass university entrance examinations, and those who manage to proceed to university are unprepared for
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